F&N Expands PET Production Capacity with RM42 Million Line
Posted on 12 October 2011


Confident of strong market growth for CSD products


Shah Alam, Selangor – F&N Beverages Manufacturing Sdn Bhd today inaugurated its RM42 million 3-in-1 mono-block production line at its soft drinks manufacturing facility in Shah Alam to cater to the growing demand for PET (polyethylene terephthalate) beverages in Malaysia.

With the distinction of being the first mono-block production lines in the Asia Pacific region, the high tech line will boost F&N Beverages’ Carbonated Soft Drinks (CSD) PET output by 30 per cent based on 672,000 bottle per day (139.2 million bottles a year), making it one of the fastest production lines in the region.

Speaking at the inauguration, Fraser & Neave Holdings Bhd CEO, Dato’ Ng Jui Sia said that the line marked yet another milestone for the F&N Group and will propel its efforts to reach out to more consumers throughout the nation via its unparalleled service delivery to F&N Beverages trade and retail partners.

“This is a significant step forward for F&N as we continue our journey to bolster our position as a regional, world class total food and beverage company. For over 128 years, spanning four generations, F&N has been delivering great tasting and refreshing beverages while quenching the thirsts of consumers of all ages. This new line is a natural progression in our commitment to satisfy, quench and refresh the next generation of consumers.”

“F&N is confident of the future and we recognise the potential of the ready-to-drink (RTD) beverages market which is growing at a rate of close to eight per cent annually and CSD accounts for 28 per cent of that market. Our investment in this line caters to CSD and isotonic products and is in tandem with demand and also directly proportionate to our vision and ambition to enhance F&N’s share of the soft drinks market in a more efficient manner,” Dato’ Ng said.

The line, brought in as completely built up unit, was procured from KRONES, the world’s leading manufacturer of production lines for filling beverages in PET, glass or cans. F&N’s investment of RM42million in the line encompasses machinery, equipment and training.

Running at full capacity since August last year, the line has already proven to improve operational efficiencies at the soft drinks plant by about five per cent. With its 3-in-1 capability, the line essentially undertakes the production of PET bottled CSD products in totality. Storage of raw and packaging materials is eliminated as the line produces on a just-in-time basis, as it can blow the PET bottles, fill and pack all CSD and isotonic products and is equipped to blow bottles in various packaging sizes, ranging from 500ml to two litre bottles.

The commissioning of the line has also helped the plant realize savings of about eight per cent to date due to a reduction in production costs and wastage while making way for a cleaner, more hygienic process arising from minimized handling. The line also uses 15 per cent less water and about 8 per cent less electricity than conventional lines.

Dato Ng also hailed the investment in the line as it significantly enhanced the green capacity of the plant, The line uses 15 per cent less water (water consumption has dropped by about 12,500 m3 annually) and about 8 per cent less electricity than conventional lines while energy consumption is lower by five per cent.

“We have cut down our overall carbon footprint by over 15 per cent. This is a step in the right direction as we not only want to grow our market but we are cognizant of the need to expand in a manner that is responsible and protective of the environment. We are also looking at implementing more green projects and these include an energy audit to optimize energy utilization in the plant; a water saving project including harvesting of rain water and recycling production water for non-critical use; and alternative energy options using solar panels, recovering waste energy and biogas generation from soybean waste. These initiatives will also generate greater savings and efficiency for this plant,” he said.

Dato’ Ng said the F&N Beverages will continue to offer a wide selection of new products to complement a wide portfolio of formidable brands like 100PLUS, F&N, Seasons, Fruit Tree and Ice Mountain.

“Moving forward, F&N Beverages will deepen and widen its already strong brand foundations leveraging its wholesome, feel good nature that has allowed F&N and its products to lead the field in many categories. Our enhanced focus on product innovation will enable us to lead and be at the forefront of the industry while being meeting the nutritional, health and lifestyle needs of discerning consumers. We aim to refresh, quench tastes and remain a favourite amongst them” Dato Ng added.

Media who attended the inauguration were also treated to a blind tasting of new F&N product, the first of its kind in Malaysia, scheduled to hits the shelves in the coming week. F&N is confident that this product that offers functional benefits will be a hit amongst consumers thanks to its refreshing soda enhanced and energy-giving qualities. 

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